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5. Ordinance 1710 - West Side Urban Renewal Plan - 1st ReadingCharles A. Harball Office of City Attorney City Attorney 201 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 TO: Mayor Tammi Fisher and Kalispell City Council FROM: Charles Harball, City Attorney Tel 406.758.7709 Fax 406.758.7771 charball@kalispell.com CT® Resolution No. 1710 — An Ordinance Approving the Acquisition, Demolition and Construction of the Gateway Theater Property as an Approved Project within the West Side Urban Renewal Plan MEETING DATE: December 19, 2011 — Regular Council Meeting — First Reading BACKGROUND: On December 5, 1994, the Kalispell City Council adopted the West Side Urban Renewal District Plan as an amendment to the Kalispell City County Master Plan [the Plan]. The Plan adopted a strategy to be followed preparing for redevelopment in the area. That Plan contained goals necessary for the implementation of the strategy as well as projects to meet those goals. The real property commonly known as the Gateway Theater Property, located within the West Side Urban Renewal District at 1275 US-2 West, Kalispell, MT 59901 contains a vacant disused theater building of block construction in disrepair and built largely upon the flood plain, that is a blighted condition within the definition of the Montana Urban Renewal Act. A proposed project to accomplish the removal of the blight specific to the Gateway Theater Property is the acquisition of the subject property by the City and/or Flathead County for the purpose of demolishing the existing structures and placing the public infrastructure of a parking lot and maintained green space upon the property. It is the recommendation of Kalispell Urban Renewal Agency that the City Council incorporates the proposed project into the West Side Urban Renewal Plan as rehabilitation and redevelopment or a combination thereof, of the Gateway Theater Property will meet the goals of the Plan and is otherwise necessary in the interest of public health, safety and welfare of the residents of the City. Ordinance No. 1710 December 15, 2011 Page - 2 RECOMMENDATION: That City Council gives consideration to and pass Ordinance No. 1710. FISCAL IMPACTS: Ordinance No. 1710 allows the utilization of West Side tax increment funds for the described project and also allows the City to borrow funds to accomplish the needs of the project. A borrowing of funds will extend the life of the West Side TIF for the duration of the life of the loan. 11 Respectfully sub fitted, Tw� Char64.4-fa/rbitll, City Attorney II ,-Jane Howington, City Manager Office of City Attorney City of Kalispell Return to: Kalispell City Clerk PO Box 1997 Kalispell, MT 59901 Ci1.1111 �_j►Cy C1�i rj[i7 WHEREAS, on December 5, 1994, the City Council (the "City Council") of the City of Kalispell, Montana (the "City") adopted the West Side Urban Renewal District Plan (the "Original Plan") as an amendment to the Kalispell City County Master Plan; and WHEREAS, the City Council also previously adopted Resolution No. 4309 that made detailed findings regarding (i) blight conditions existed within the area of the West Side Urban Renewal District (as defined below) and (ii) that rehabilitation and redevelopment or a combination thereof, within the boundaries of the West Side Urban Renewal District was necessary in the interest of public health, safety and morals or welfare of the residents of the City; and WHEREAS, on March 3, 1997, the City Council held a public hearing with respect to the adoption of the Original Plan and the creation of the West Side Urban Renewal District and the public was given an opportunity to be heard at such public hearing; and WHEREAS, on March 17, 1997 the City Council of the City acting in its capacity as an Urban Renewal Agency adopted Ordinance No. 1259, approving the Original Plan and the creation of the West Side Urban Renewal District in Resolution No. 4309 and Ordinance No. 1259; and WHEREAS, the West Side Urban Renewal District was created in conformance with and pursuant to the powers granted to the City under the provisions of Montana Code Annotated Title 7, Chapter 14, Part 24, as amended (the "Urban Renewal Act"); and WHEREAS, the City has continuously been administering the West Side Urban Renewal District in compliance with the terms of the Urban Renewal Act and Montana law since the creation of the West Side Urban Renewal District on March 17, 1997; and WHEREAS, pursuant to City Ordinance No. 1347, on February 7, 2000, the City amended Ordinance No. 1259 to modify the Original Plan and approve certain infrastructure projects as urban renewal projects; and WHEREAS, the Original Plan adopted a strategy to be followed preparing for redevelopment in the West Side Urban Renewal District; and WHEREAS, the Original Plan contained goals necessary for the implementation of the strategy that have been met as well as goals of the Original Plan that have not been met; and WHEREAS, in 2011, the Planning Staff conducted an extensive review of the Original Plan, including, mailings to property owners in and around the West Side Urban Renewal District, public meetings, and soliciting input from residents and businesses in the City, including those in and around the West Side Urban Renewal District, in order to identify if the conditions detailed in the Original Plan are still present in the West Side Urban Renewal District; and WHEREAS, Planning Staff prepared an amendment to the Original Plan (the "Plan Amendment" and together with the Original Plan, the "Plan") in staff report KRD-11-1-A that details findings regarding the blighted conditions that continue to exist in and around the boundaries of the West Side Urban Renewal District; and WHEREAS, the real property commonly known as the Gateway Theater Property, located within the West Side Urban Renewal District at 1275 US-2 West, Kalispell, MT 59901 contains a vacant disused theater building of block construction in disrepair and built largely upon the flood plain, that is a blighted condition within the definition of the Montana Urban Renewal Act; and WHEREAS, rehabilitation and redevelopment or a combination thereof, of the Gateway Theater Property is necessary in the interest of public health, safety and welfare of the residents of the City; and WHEREAS, a proposed project to accomplish the removal of the blight specific to the Gateway Theater Property is the acquisition of the subject property by the City and/or Flathead County for the purpose of demolishing the existing structures and placing the public infrastructure of a parking lot and maintained green space upon the property; and WHEREAS, the Kalispell Urban Renewal Agency has reviewed and considered the Gateway Theater Property Project and has recommended to the Kalispell City Council that the project be placed in the West Side Urban Renewal Plan; and WHEREAS, the Kalispell City Council hereby finds that the proposed project meets the criteria of the Montana Urban Renewal Act and the policy delineated in the West Side Urban Renewal Plan and that it is therefore appropriate and in the best interests of the residents of the City to include such project in the Plan. FOLLOWS:NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS SECTION I. The proposed project, having been duly reviewed and considered is hereby approved and included as an approved project within the West Side Urban Renewal Plan. SECTION II. Unless specifically amended by this Ordinance, the provisions of Ordinance No. 1259 and 1347 are hereby confirmed and remain in full force and effect and are reaffirmed. Such provisions are also found to apply to the expanded boundaries of the West Side Urban Renewal District. SECTION III. This Ordinance is to be posted as required by law and copies made available to the public upon request. This Ordinance shall take effect thirty (30) days after its final passage. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS DAY OF JANUARY, 2012. Tammi Fisher Mayor ATTEST: Theresa White City Clerk Mayor Tammy Fisher City of Kalispell Re: Gateway West Mall Proposed Parking Expansion Dear Mayor Fisher, December 12, 2011 A few years ago I met with Kalispell City Manager Kukulski and Flathead County Commissioner Gary Hall to discuss parking at the Gateway West Mall. Our family owns a tract of land on the corner of Glenwood Drive and Husky Street adjacent to the Gateway West Mall, It is 40,800 square feet. It could accommodate parking for 200 plus vehicles and as a corner lot it has excellent access for ingress and egress. It is in close proximity to Tele-Tech's east entrance. It could be made available immediately. There would be little site preparation. Engineering expense and oversight would be minimal. It would immediately meet the parking requirements of the Tele-Tech lease. It could be developed in phases so that the city would not have a paved lot which could self destruct from lack of use. Other businesses in the area could be offered leased city parking spaces in addition to any new mall tenants and their future parking requirements. The project would extend the life of the west side tax finance district. This parcel does not have any unanswered questions about the property. It is not located in a flood prone area. It does not have a structure which would have to be demolished and removed at great expense to the city. The City could generate cash by selling the lot north of the center mall and apply that money to the project. It would be a much more prudent investment for the City of Kalispell than the theater property. With the renewal of the district, the City could look at the theater property at a future date when additional parking is actually required by a new tenant. We would look forward to meeting with the City to discuss a lease, lease with purchase option, sale or land exchange. Thank you for your consideration. Sincerely, Jerry Begg Theresa White From: Margaret Davis [msdavis2@mac.com] Sent: Monday, December 12, 2011 1:13 PM To: Theresa White Subject: Gateway Center parking garage Dear Council members, I do not support the Gateway Center parking garage proposal. The idea of using TIF funds for a parking garage is an idea that should have been floated long before now. It ignores the basic problems with this failed shopping center. Poor vehicular and pedestrian accessibility, limited easy access to Hwy 2 eastbound, a street pattern that defies logic, and wetland constraints present when the center was built have not been addressed. The current proposal before the City, besides being complex, expensive, and unneeded, does not resolve any of the underlying land use planning questions. If I were in a position of voting to pursue this idea OR to revert the TIF funds back to the tax entities affected by the TIF, I would opt for reversion. Margaret S Davis, homeowner 160 Charlotte Ave, Kalispell MT 1 To: Frank Miele From: Dale Harrr Re: "Let It Die" or "Merry Christmas Mr. Phil Harris" Something goofy is going on at City Hall. The Sunday Interlake (12/11) reported that in order to keep the west side tax increment district alive they are considering the following; 1. Trade a perfectly flat, ready to develop lot (when parking restriction is removed) near three mile drive for a blighted, run down, dilapidated, flood 2. They propose to spend up to $1 million (with an m) to tear the building down and construct a 255 capacity parking lot. And this does not include the money we have in the lot (nearly $750,000) which Mr. Harris is to receive! Merry Christmas. Only 55 parking spots are needed for TeleTech. What are the remaining spaces for? Perhaps a park and ride to the new 3. There is a blight ordinance and Mr. Harris has some responsibility to maintain and keep safe his property. A visit last week revealed the leavings of late night party sites. It appears access can be readily gained into the theatres where who knows what may go on. 4. A TIF district is to increase the value of properties and hence increase tax revenues. No sign of that here. And there could not be found one other project in that entire district that would do that. Time to let it go and give the tax payer dollars in the fund back to the county, city and schools. 5. 1 have a feeling there is great reluctance to let this fund ($2 million) go back to the respective jurisdictions because it produces around $400,00 a year and a fee is charged (5%) to maintain the district. This money, I presume goes into the general fund or the planning department. It is like a slush fund, far from its intended use. 6. One other reason cited was "that sunset revenue would count against their ability (city, county and schools) to levy taxes the following year". This doesn't sound like a government working for the people. This TIF money is already tax payer money. 7. This idea is not far from the recent ill fated 9 cent transaction tax. Give it back council, you know you have support for good, well thought out proposals that will come before you in the future.